Volvo Cars has announced that it will begin its vehicle assembly operations in India in 2017. The assembly unit will be located near Bengaluru and will focus on models based on Volvo’s SPA modular vehicle architecture. The first Volvo to be assembled locally will be the XC90. The brand will announce other models that will be assembled locally later.
Volvo Cars will be working closely with Volvo Group India - the truck, bus, construction equipment and Penta engines manufacturer - to set up the assembly operations, as it will able to make use of Volvo Group India’s existing infrastructure and production licenses near Bengaluru.
“I am pleased that as of this year we will be able to start selling Volvos that are Made in India,” said Håkan Samuelsson, President and CEO of Volvo Cars. “Starting vehicle assembly in India is an important step for Volvo Cars as we aim to grow our sales in this fast-growing market and double our market share in the luxury segment in coming years.”
Volvo Cars' decision to set up a local assembly unit in India is in line with the central government's 'Make in India' project, that encourages companies to manufacture in India to highlight and promote Indian manufacturing prowess.
While the Indian luxury market is still relatively small, it is forecast to grow rapidly in the coming years. Volvo currently has a premium segment share of close to 5 per cent and aims to double this by 2020.
"We are delighted to announce the commencement of local assembly unit,” said Tom von Bonsdorff, Managing Director, Volvo Auto India. “It’s a sign of the company’s strong commitment in India. Backed by a robust sales growth, expanding network and an array of new product launches the local assembly will provide us an impetus to garner a sizeable segment share in the medium to long term. Each locally assembled Volvo Car will have same International standards as anywhere else in the world. With our continued efforts we are sure to build a strong foundation for our business in India.”